Disposal of shares - share matching rules
In this lesson, you'll learn how share matching rules work when you dispose of shares you've bought at different times. These rules determine which shares you're treated as selling for capital gains tax purposes, and they're crucial for getting your tax liability right on the TX and ATX papers.
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In this lesson
- 0:00 Share matching rules for individuals
- 0:28 Why HMRC introduced share matching rules
- 1:19 Three share matching rule categories
- 2:04 How to calculate share pool cost basis
About this lesson
The share matching rules for individuals follow a strict order: first, any shares bought on the same day as the disposal; second, shares bought in the 30 days following the disposal; and finally, all other shares treated as a share pool. We'll walk through how to calculate the base cost of shares sold from the pool using a simple formula—the total cost of all shares in the pool multiplied by the proportion you're selling. Understanding this methodology stops you making costly errors when calculating gains and losses on share disposals.
Duration: 3m
Transcript
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